was. you have to read the minutes and it is longer than tolstoy, but the crisis had been going on for a year and the fed had eased earlier in the year, and those two things in particular. >> thank you, jim. that does it for us and it is time for "squawk on the street." good friday morning and welcome to "squawk on the street. " ""i'm david quintanilla with jim jameser and david faber. and s&p 500 has cracked the all-time high, and the revised gdp came in lower on the science of creeping inflation, and more signs on the way, and in europe, the standoff in crimea is intensi

intensifying. new data showing that the economy slowed at a pace than originally anticipated. nasdaq starting off at a a closing high, and 14-year high. >> and the guidance says it is experiencing severe disruption from the winter, and gap suggest suggests -- gaap suggests it will fall more than expected. >> and on mad "mad money" last night, cramer talked about raising investments. >> and we will hear from apple's tim cook. and in the first full year results are lower after discovering fraud in the subsidiary in mexico, and they go into detail, jim. >> this is not a minor story, and i know that when you look at the big revenues of citi you say, so what, but this is a major client with a checkered history and it is a $360 million and they say, $230 million, but $360 million pre-tax the.

okay. >> and you think it is important because you look at $360 million pretax fraud resulting in a $235 million after-tax writedown and it gets complex. >> it is complex. >> but related to transactions between penmax and vanimax who is a big subsidiary? >> yes, because i felt that citi is the emerging market bank, and this is the jewel of the crown, and this is a company troubled for a long time. there was a corruption investigation started february 14th, and citi does allude to that, but when you are the emerging market bank, what you want is 6% to 7% growth routine and you don't want corruption, and this is a throwback and this is a oceanographica, and it is not a company you want to be

affiliated with and they can sell assets, but it is a black mark, and the stocks started trading down when the investigation began and all of the financials are weak, but this is disappointing. >> but time again we have a company admit to or accused of having trouble doing business in this specific part of the world where as you know corporate practices are just different. they are different. >> right. but when i used to speak to vikram pandit i would say how great is this company? and bannimex has a great reputation down there and i don't want to see the gigantic slipups from the outfit that is a bank that has not recovered as well as other the banks from the great recession. >> and now, listen, to put it in p perspective, but it stays at $360 million pretax it is what? 20th the size of the whale. >> right. it is not the whale. >> and nothing approaching it. >> and they are forward about

it. >> they say they are able to support the validity of $185 million of the $585 million of the account receivables owed to them as of descember 31st, 2013 and they go into a lot of detail here all of which is to the give the idea that we have it covered kind of, although they are still ip vest gating. >> and they can sell assets, but it is easy for michael corbat to pick up the phone and cramer, you whatever and this is so minor and how could you put it out and i would say, well, you don't make it minor in the release so don't ask me to minimize it up here. fair. >> fair. >> and big company when they have news, we will follow the news. in the meantime, the government says that the economic growth in the fourth quarter is slower than first thought. gdp in the fourth is revised lower to 2.4% from 3.2% and putting the s&p 500 hitting the all time closing at a high of

1,854. and we have been following the commodities all month long. >> well, this is something that is a big debate in the country right now. the macro numbers are clearly not that strong. and the retailers are all saying that since valentine's day things are good which i thought that the interest rates would go hi higher, and housing was strong in january and so you have a nirvana and the strong data and the interest rates are not going higher and i point out that there is a story that is buried and driving me crazy which is the decline in the deficit. nobody wants to hear anything about it, because it went from the trillions and you know the president could say we have cut spending here, and maybe because of the gridlock, but there is not a lot of supply of bonds. how about saying that. >> well, there is a decline in the deficit, but i don't know how much of that s is due to th proceeds of fannie mae and freddie mac. >> and the fdic had a good trade in there. good trading by them. >> and we have not talked about it often enough, but we have

talked about the lawsuit initiate initiated by perry and berkowitz and ackman owning the common which is up sharply, but they are way past paying them back. and the president -- >> and the president has said that the common -- >> and the third amendment is all in place meaning that all of the profits are e sweeping to the government helping the e deficit. >> it is a windfall due to the rising pricing in housing, but the president said that the common should go to the treasury and he made that statement, and the fdic knew that the preferred and the fdic made a good trade instead of a bad trade. >> and did they know something, because it seem had the fdic had incomplete information there. >> and hey, well, steve cohen h, and danny may. >> yes, and broadly jim, on the -- there is a list of 29 commodities that we track and only one negative for the month is nat gas and some of them like sugar are off of the charts, and you get a core number today, and gold is up 13 of 16.

>> and the commodities are a huge head wind and i'm watching beef go up, and that is core for people. we still don't have wage inflation, and we don't have that demand polypflation that we learned about in school. joe kerr was talking to bullard today. >> that was a great exchange between kerr and bullard this morning. >> great stuff this morning. >> and the crises maybe in the ukraine and i don't like it when there is no crises, because that means that there is something that we haven't seen, but the numbers are okay. i'm still trying to figure out how the common stock shareholders could be on such a different pace and talking about credit with the bond buyers. it is on a different page, and it used to to be selling the bonds if the people who are buying the retail stocks are right. >> right. you are right, but usually you want to look to credit rather than the equity markets. >> and would you rather sell the third biggest bond market in the world, 3.5% italy and pick up

the u.s. ten-years at a decent price. maybe that is what is going on. and italy is less stable than the u.s., and i don't want to cast dispersions on italy. >> by ours at 3.6 or theirs at 2.9. >> yes. the 10-years. >> we got another letter from carl icahn. >> and it is 9:00 and you can set your clock by these. >> and do you think that there is a coincidence of these that we go on the air at 9:00, and carl sends a letter every morning, and i don't want to spend a lot of money, but this is fun. this battle between ebay and the rapid response room if you will have from p.r. to ebay, and icahn won't stop, and of course as i have called him relentless and he goes on the say today, shareholders need to think seriously if they should re-elect the directors to the board and i don't buy the stuff

in terms of the ebay's and why they are great directors and i won't be silenced by the the double double-speak, and the ebay public relations machine, and the ebay board is under denial based on what they have been watching. and most of it is focused on andresen and scott cook, and he has in the offices some very beautiful pictures, if you call them that of battles from years ago. and he is a historian. and he likes to watch other guys fight other guys. >> and if you put him and andreesen on the front page of business there, and of course, carl icahn. >> and you can see him accepting andreesen going to the journal.

>> well, not as satisfying with having a conversation with him, and talking through the idea of what is the benefit of you being on seven boards and three of which are big companies like facebook, hp, and so you have recused yourself, but it is worth it to have a director who has to recuse himself every time there is a board business? how are you helping yourself? and what is the benefit to you? it is not about money to him, and you clearly want to be on the board and you are learning, and what are you learning and helping you to do? well, certainly helping you with the core business which is investing in companies. >> and maybe andreesen is v valueless or conflicted. >> i would want a further conversation and i hope that he joins us at some point to do that. >> maybe he is going to call into wapner, the judge, and at the same time carl calls in, and we will have a another stop trading moment. >> and maybe you can have indra on the one big mashup. >> how nasty does that get?

>> well, yesterday, pepsi responds in a letter and it was a slap-down letter. >> yes, take that! >> and i'm not quoting here, but all of the directors have gone through this many, many times and we can assure you we know what we are doing, and please, stop, you are wrong. >> and jim, this is the e question, if you are a big activist or the holder or the fund manager, and you feel that the market is getting heavy, why not start yapping as they say? >> well, yapping has worked. >> is that what is this about? >> well, yapping has work sod well sh well, and is there a doubt in my mind that tomorrow pepsico says that we like what they say that it will go up, and short-term, yes, and indra is trying to think longer term, but one thing that he has said that is that pelz has been targeting people, and it is a shareholder insurrection? >> well, i don't know, and i think that -- i don't think so. >> i don't either. >> i don't think so not on this one, not on peps si.

>> and we know that soda is challenged. >> i query people all of the time who are hold ers or considered to be or have thought about it, and it is a split decision, because many believe that paypal is better outside of the business and others who believe it should be incorporated into ebay. >> and to carl's point, ebayh is at 58 on the squawk box. >> right. >> that is important. >> right. and we mentioned that the sothebys with dan loeb. and activism takes the headlines and going after three board seats when he conceivably could have gotten one, and sothebys e reporting yesterday, and they come back and say, dan, come on, you think that one voice is enough? you don't have enough confidence in yourself to be on the board to effect some change? >> well, they learn it from cnbc. you know that. that is what wapner said yesterday, they are watching cnbc and we are under attack. >> and yes, carl icahn. >> yes, again.

>> and more to get to this morning are the what to con can collude from the apple shareholders' meetings where they will have questions for tim cook. and annie's has a lot to say about the gmos and what is there to say about the new food labeling proposals, and we have not mentioned the face-off with jim last night, and we have the produce over "house of cards" and so much to get to this friday on "squawk on the street" back in a moment. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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apple is set to hold its annual meeting in a few hours and shareholders can grill tim cook about the company's product and innovation strategy and of course, what apple will do with the cash. that is another conversation, guys, that comes straight back to carl icahn. >> and yes, remember that icahn's proposals are not being seen -- >> i would like to say that apple beat him like a dusty rug. you know how you take a rug out. >> are you recommending mohawk carpet or something? i made that up. >> and apple beat him. they beat him. >> and what we are still hoping for apple is something revolutionary and nobody stops at that, but i thought that the software in the phone is revolutionary and i love the iphone and that is not a reason to buy the stock, but a lot of people are in the stock, because they love the iphone and you need a catalyst and the growth is much less than a company like google, but people keep looking

at -- you speak about -- i did a book signing last night, and a vast majority of the people own apple, and why? because it is cheap. and with we know that the stock s can stay cheap for a long time. and apple had a big move, 10 point move go g toing into the meeting, and now people are saying, why did we buy it? >> and yes, why we are talking about a company for the fiscal 2014 is going to repurchase 2 billion of the shares and that is again, fiscal year 2014, and give us an update not at this meeting about what are the plans of capital allocation, because this company is going to take in $40 billion plus in cash. >> and we talk about forced sales, and now growing, he had $480 billion in revenues and now $5 billion in revenues. and people at home revenues, i want earnings. the average portfolio manager who likes stocks does want to

see capital allocation, but the furious growth and saying, wait a minute, it is 35% or 37%, and workday will give us 75% growth, and they are operating in the cash flow positive and it is not like the companies are putting up numbers ta are just losing money on sale. but this is a problem. >> you had workday and mark on last night. this is a look at what benny told jim on mad money. >> we have increased the guidance by over $100 million to $5.3 billion, and jim, we will be the first cloud can company to get to 5.3 billion in a year. >> and why does this matter? >> because that is a huge guide up, and what people look for salesforce versus the dividend and goldman put out a good note of the usually 30 million, but it is now $100 million and this is a monster quarter. >> and the stock is active in the premarket or after, and not this time, and why? >> well, because workday is the pa

partner, and bushery is par with what happens at workday is often concur, and there is a lot of companies who use the platform and good friends, so i think that they stole, and today, the icahn is out, because workday stole it again. and this is a big company. >> bigger everyday. >> and i can't get over zoo lilly, and was that money? >> well sh, i didn't mean to. and i have been saying it is the amazon, amazon for six months, and you should own zulu, cramer. well, i have been to the site, but i don't buy women's cloth g clothing. nobody's perfect. but zulu is good. >> and we will be -- >> go shop, and when you say go shop, i don't think merger, i think zu lilly. >> we will get cramer's mad dash

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it is friday and we have 8:00 to go before the last opening bell of the week. start out with the mad dash with decker. >> this is down 10 and why? well, this is a remarkable quarter for uggs, and they did a great job, but the guidance was so terrible and so negative that the analysts are either jumping ship or revising the price targets down. i 'm not saying it is an opportunity, and the reason i know it is because i don't like fashion. fashion is a tough industry.

look at lululemon, and uggs did have a good quarter, but mr. martinez threw so much water on the forward that people are scratching their heads and selling. >> trying to figure out the retail and what is going on there and the comments of the company versus what happens to the stocks and yesterday for example, jcpenney and these are horrible quarters, and the stocks went up sharply, because they were better than expected. >> talk about ugdz, hey, it is cold and go buy the uggs. people at home, don't play the game. the game is more sophisticated than that. and angel, and he is a conservative man, and do i buy the stock down ten, again, if you think that uggs is more than multiyear brand, then pick it up, but it is too hard. if northface didn't put up the numbers that i wanted and that bf corp is fantastic. >> well, that didn't go too well. >> and a goldman downgraded, but it was a good opportunity,

because it came back. >>to se spe lunking for -- >> well, i want to go cave diving. >> i want to know why it is called spelunk. >> okay. >> and we will have much more on "squawk" coming up in a moment.

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you are watching cnbc's "squawk on the street" live from the financial capital of the world on a friday coming off of the all-time high for s&p yesterday. dow is negative for the year and the only major average that is, although we are at the highest level since january 22nd, and need 108.4 points to beat the laggard. jim? >> well, we know that the drug stocks are hanging in there and teleco stacks are hanging in there, but verizon is a laggard and so many things in the down. >> and the comps are flat.

>> well sh, people like gaaping because it is a great al locator of capital, and i was happy to see in the last 50%, they bought in 50% of the company and the expense control is terrific and are the numbers great? so-so, but it does not matter, because sometimes people want to see the capital returned in a decent fashion, and that is why gaap is going to creep up here. and not one of my faves frankly. >> and similar story at ross. they meet at 102 and again, conservative. >> well, ross used to be a growth company and that is a disappointing quarter, and they know it, but again, the stock had been down, and people say, eh, but these stocks are basically all discounting the bad numbers. we got bad numbers and people feel that the future is better and there is a sense of optimism in the retail stocks that is extraordinary, just extraordina extraordinary. >> because it is not deed? >> -- because it is not deserved? >> well, because it is not

warm warmer. when it is warmer, they are shopping, and it started with macy's, and go back to the call of the macy's quarter that was not great on the surface and said disappointing, and terry lund grgren called it disappointing, and since valentine's day, bingo. and then disappointing number by home depot and then lowe's, and what the heck, people are going to shop again. give me a break. >> and in facebook, again, goldman taking the stock to 78. >> well with, we don't care about privacy, and reading the the stor y in the "wall street journal" i have to tell my kids to get off of facebook and buy some which my charitable trust does. >> and don't buy yahoo! because the secret service going to be watching and thinking about the xbox, and they are going to spy on that, too. >> oh, president nixon? oh, president obama. >> this is in the uk also. >> and nude pictures and don't put your -- memo to viewers, don't put your nude pictures on yahoo! or facebook.

>> and privacy was dead years ago when scott -- you have to e help me here. scott -- >> oh, man. >> the hockey player. >> i'm thinking. >> come on, guys. >> sounds like? >> privacy, get over it. >> how about the chinese, i saw a documentary. >> we will come back to it. >> h this happens to my age. >> well, you are only 56. >> shut up! >> and there is the opening bell, and we will give david a minute, and the s&p 500 at the top of the screen and as we told you s&p, the best month since october. and the minister of the welsh governor is celebrating national wales day. >> and shawn kean connery. >> they don't take well to bullets. and so we touched on the macro data and still waiting on pending home, and chicago pmi,

and they get cold weather every winter. >> and the numbers, the bulls in the stocks are saying that the numbers are suppressing all of the good news, and the bond guys are saying, no comeback here at all. and the government spending is so low that when you, remember, you would think that all of the people would come on the air and say, it is all propped up by the government spending, and then you get the government spending coming down and what is it propped up by? well, it is not being propped up at all, and when there has been a big pause in the economy, and i don't see the pause in the economy, and i can't be overlooking every single retailer to decide that every single one of them is good. sears up yesterday, david. did you find out anymore about the land's end change? >> well, we did, actually, and thank you for asking. it was scott mcneley, and thank you, john grilli. >> from sun corp? >> well, privacy, get over it. and that is something like 15 years or so, and it is not like scott is around to ask, but privacy is more than dead. on sears, interesting that i did

finally get the company to discuss with me or give me a reason as to why they left out the paragraph about solvency in the latest filing regarding the impending spent off of land's end. and what i can see is that it is related to the s.e.c. is consta constantly moving it, and until they are solvent. >> and how does a that work? >> well, you are constantly in communication with the s.e.c. and they advise what it likes and doesn't like in these things, before it is effective. >> and in the case of sears, did anybody see anything positive in a single press report on sears? >> as the journal reported and the sears with the way that the stock moves and berkowitz owns 24 million shares and lampert owns 23 million, and so you have violent swerves in sears and

difficult to put it together. >> and even in the consumer appliance week. >> and home depot told us it could happen, that if if there is an area where there is competition, and not a pass, and we have apny's on, and sprouts reported a terrific number, and the stock is hardly up. sprout's had 15% comps, and that is an area where people feel duke out the natural or the organic earea, and people say yu know you like the whole food sales, and you have liked it since 1983. >> well sh, the food and bevera is up. >> and what does that mean? i don't really understand it. >> what did you just say? >> oh, okay. i got it. but it took me a minute. >> and the sales are up in the face of some of the legal threats regarding the caffeinated energy drinks. >> have you had that stuff? >> well, you are in pluto in a

nano second. >> and you are banned from having one. >> he had one in the commercial. >> if i one have now, i won't fall asleep up till sunday night. that stuff is good. drink it. >> oh, no. >> and you did spelunk, and joseph a. bank and abrams. >> well, it is interesting in light of the not large deal, but with we see so few hostiles out there at this point, it is intere interesting to follow the back and forth on joseph a. bank. i don't know if we have the graphics ready that we like to put together. all right. anybody want to say anything in my ear and let me know whether that is the case. >> what happened to the great eddie bauer idea? >> well, it is out there, and in fact, joseph a. bank, and do it here if they decide to engage or reject 63.50 from men's warehouse, and to engage, and

then they put out a press release this morning, great, we are ready to engage. and a number of people are more positive on the prospects that you will get a potential deal here, and having spoken to any number of riskarbs and the like who follow these things and the interested shareholders, but the question is how much and to what level does men's warehouse have to come? they have said willingness to 65, and they are granted diligence and they would go to 65 after diligence and you will have a brief diligence period here, and then we will see. joseph a. banks has asked for the best and the final. and how big of a positive is it? well, it is viewed overall as a positive, and then this question, is joseph a. banks really going to try to get the last penny out of men's warehouse as they should, or are they trying to look good? they have a court case in less than a month in delaware and the hearing tuesday did not go particularly well for them, and are they trying to put up a fact

pattern for that? but they did put up a stiff arm. and on structure, we'd like to see perhaps some stock or at least investigate the idea, but then the response from men's wearhouse, and they indicated that the advisers for joseph a. banks and they want all cash and we are trying to figure that out, and some people were positive on joseph a. banks to engage in the fact pattern, and this is beyond a judge in delaware to go beyond that, and that is to say we don't know. and they are willing to throw in the stock and maybe to 67 and maybe a deal done, but with 65, and that is it. it is hard to imagine that they will get a deal done. >> and where the heck would this stock be without this saber rattling? it would be in the 40s. it is not doing that well, joseph a. bank. >> and look at ebay today, and we can dismiss icahn's letters and the frequency of them all you want, but it is working. >> the share quotient here is extraordinary and off of the charts. i am raising my letters per

share here, and doing it with multiples per share. >> this is part of the hearing that took place tuesday and interesting to read these, because you will read a lot, with but this is the men's wearhouse lawyer talking about the joseph a. bank transaction and i finally say it right. and the eddie bauer transaction, and come on, 46 million shares at $56 and paying 13 times the e by ta, aebita, and come on. hostile deals have not work and i can go back and back and back and we have talked about it so many times and it would be fascinating if it did work. >> and what about oracle? >> well, that is the last one that worked. >> and how about going back to workday? >> no doubt about it. >> and the bushery singled out oracle as not doing a great customer service, but aren't they winning? aren't they winning in the world

cuppers? i saw a picture of the oracles, and isn't that what you want if they are doing the information technology to win the race thing. >> i love it when you are sarcastic, because that is the best. and we will move to bob pisani down there on the floor. >> well, hello, happy friday and we are there with the historic highs with the s&p and the mid cap, and russell there as well, and putting it up on the screen, the biotechs are moving the russell 2,000, and by the way, the emerging market stocks, and concerns about the ukraine which is genuine, the eem is holding up well, and moved above the 50-day moving average and no other signs that other parts of the world are worried about it. and you know beat the earnings, and the guidance was mixed, but they are not dropping today, so the ross stores following tjx and lowered the guidance and gave them below expectations, and gap did the same thing, and pier 1, and decker outdoors is seriously disappoint iing, and

disappointing to decker is 10% sales growth is considered a disappointme disappointment, because they were looking for 14% sales growth guidance for 2014, and 8% earnings per share growth was a disappointment as well, but those are terrific numbers. if you want really great numbers or guidance look at sales force and we are there. and we are down a little bit, but essentially at the historic high on the sales force, and if you look at the billings, you look at the bill inings on the sales force and look at the metrics putting up. for the u.s., 41% increase in billings, and 35% in europe and 24% in asia/pacific, and that is why the salesforce management software has been a star in the last couple of years. hold on, because we are about to enter ipo heaven. a dozen are coming in the next couple of months, and today, we had varonis systems, and hot space, and 22 million, and the

price talk was 17 to $19 and thou they upped it to $22 and that is what i am talking about, and we will talk about this coming explosion in the tech ipos with scott cutler who is the head of listings here at the stock exchange, and watch that at 11:00, and we will talk about new stuff coming out. and today, we will talk about the trading systems and if they are too complex, and you have been involved in this and we know 40 or 50 trading venues out tlsh out, there and is there too many? we think that there is, and scott garrett thinks that there is, and kudos to him, because this is something that the s.e.c. is serious about this year, and we may hear a lot about this in the future, and i will be all over that. guys, back to you. >> thank you, bob pisani. and now over to the bond pits to rick santelli at the kcme group. >> well, happy, f shg, happy fr. good and bad, and many ways to look at it. and the interest rates have

crept up a small number, and maybe it is friday and the scrutiny of the marketplace and kiev and ukraine, but as you see the one-day and two-day charts and keep in mind we are up three basis points, and down six basis points for the week, and open up the chart year to date, and you can see the right side of the chart, with we are moving to down side as the curve is flat inning a little bit. as you look at the bar clay's one-month, you can see the spreads narrowing, and look at the perspective of the fyg and you can see that something happened at 4:00 a.m. eastern and that is ton employment data in the eurozone, and 12% made them happy, because look at that, the bund yields moved up, and in europe, another jump in the handles, and as a matter of fact, we are a whisker away of checking out levels that we have

not seen since the end of 2011 on the big chart there. back to you. >> thank you, rick santelli. and coming up, we will get the breaking news and chicago pmi is on deck, and later this morning, dana brunetti, the executive produce oref "house of cards" up for an oscar this sunday. we will be right back with more "squawk on the street." iwe don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com

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with welcome back the "squawk on the street" and we have a the february reader and purchasing manager survey coming in better than expected at 59.8. this is a nice hit. we were looking for 56 and change, and last read on the unrevised at 59.6, and so 59.8 takes us back to 60.8 which is the december read, but a very firm read indeed. still university of michigan sentiment index to come out, and of course, next week we will get the national number from the institute of supply management. carl, ba back to you. >> and still more data on the way, rick. and thank you very much, and meantime as that data has hit

the dow up 35 and the s&p 500 is almost 1860, jim, and big intraday right now. >> and people are ache mag it more bullish with the rate coming up day after day, and this is a chinese situation where people feel that maybe china is coming back online which is very important. we continue to have, and going back to the gap, the supply shortage. and we are seeing the buybacks and people are saying, hey, i have to pay up to get to the stock, and that is happening throughout my market, and this is the undercurrents of the markets doing something and talking about the activism, and 3m is doing restructuring and nobody talkings about it, and the company is taking the stocks the into their own hands and the companies are not being reflected correctly into the stocks, and you will get higher prices. >> and those are two big trends that are linked to activism and

we talk about it everyday and we kid about it, but it is a huge issue and own grown over the past two to three years and when you think back to the continued transparency of the interaction of shareholders and management, and going back to green mail, and carl, and the idea to take a block and then get paid a premium over shareholders and can you imagine something like that happening today? >> well, it is extraordinary, and the revenue growth up, and the spunk. spunk is a big data mining organization and not com stock, but revenue growth, and spunk, and sales force and so a whole group of managers who are throwing it into the biotech, and is this the most worrisome thi thing? what does everybody want to do at my book signing, short tesla. >> and tesla, funny that you said that, because it is interesting why the nasdaq is up 3% of the year, and the flash

and the number up with reason is tesla. for the year, this year, up 67%. >> i mean -- >> when does the day come to sure test, because there is going to be a day. >> well, it is too early to buy zynga, and too early for groupon until you have five and it is too early to short tesla. >> too the early to short tesla. >> and this is not web van in terms of the vehicles. >> nott a all, but the growth rate will slow, and the prospects will move in. >> and i am not going tg ing to recommend and people will say, cramer says -- >> and a week ago people were saying to disrupt the great, and now tesla is the storage facility for america. >> and you are playing solarcity and don't forget that the move in solarcity -- >> i am not playing solarcity. >> it is part and parcel with the part that they have a revolutionary battery system, and panasonic comes in, and we did a story that the factory is coming n and phil lebeau talking about the factory and a lot of

jobs. >> yes. >> and you don't think that it is too much to hinge on one analyst report as good of a read it was? >> well, i talked about the qualcomm price target in december of 1999 and never got, there and talked about the technology of qualcomm would win the 3g war, and it did, but it did not mean that it won the stock or the stock didn't do anything, but i e say to everybody who asked me about whether they could short tesla, there is many more people who want to own it than sell it. and that is pretty much it. and then it is wrecking so many people, and so has netflix. >> and we mentioned qualcomm in terms of the activism, and cash, a and that i have $30 billion. >> i don't have a lot of the capital there. >> and when we get back, we will talk to jim about consumer sentiment, and "squawk on the street" is coming right back. we route your order to up to 75 market centers to look for the best possible price,

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♪ you talked about the nasdaq being up big and this is one of

the reasons. take a stock like omni vision technologies and they reported that a number of people didn't expect anything good because people thought they would lose apple business and china business, but it was much better than expected. they are looking for trading cash, and sound like yahoo!? it is a major change. and now what has been red hot is biotech. medivation, they ahave a cancer drug, and they say they will accelerate, but it is not. and the jaws are dropping on the analysts who were bull ish, and keep in mind that where you have moves in biotech where everything is up, and up, and up, and everything must be perfect, and when they are not, the stocks get hammered. >> and how do you guide people through that morass, the biotech morass and who is going to win and lose? >> well, you fry to have companies who are more than one product, because we call them

shots on gold at "mad money" and you are giving up one at medvation, and they have ce cellgene is the three-legged stool, and also the drug coming out for the macular degeneration drug. >> and so other companies -- >> well sh, remember, if you haa company with one drug that is a fatal disease and the drug can cure the fatality, that will make the fda look up. >> and that is not the first time it has been going through something like this, because it has happened like that. >> and well regeneron has been the best performer, and when the stock was at 5 we put it on, and the stock is at 340, so, yes. >> a one-year. >> look. i mean, you have a big gain, and

if the stock w >> yes, and it is a a great day the house's money. for data and we have been through the revised gdp and we will get to rick santelli in chicago. hey, rick. >> well, we are momentarily expecting the february final read on the university of michigan sentiment survey. 81.6! 81.6. and now remember that the mid-read which falls out now is 81.2, and we were expecting a lateral move, and so 81.8 is indeed better than expected. i like to do the comps, and the last time we had a level higher was not that long ago and just like in chicago, it was in december, and 8.25 in desemer, but the firm read just like chicago, and chicago is a firm read as well. carl and the gang, back to you as we definitely have to get some digestive juices going with all of the data that has been out this morning. >> i can't believe i ate the whole thing, rick. i will tell you, a lot of numbers in the last 15 minutes.

>> and look at the financials and citi is up, and cramer, why did you cry wolf? well, doi wa shg, i don't want do poorly, but as rick just said. >> and what about the oscars? >> yes, wear the tuxedos, because we will be giving out the golden bulls. and we will have a walk and the actor who is the star, marshall, and this is against the food chain. for wise the ak tctor and again marshall the food chain and notch ral organic chipotle versus mcdonald's. >> and when is that out? >> on youtube clips and we will put ray on. when you look at the obesity figures and the soda figures and something much bigger is going on here. and the white wave and this is a

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welcome back to "squawk on the street" i'm diana olick with news from the national retailers. the pending home sales is flat. up 1% in january and these are signed contracts to buy existing homes in january and they are still down 9% year over year to the lowest level since november of 2011. now the realtors are blaming part of it on quote disruptive weather patterns, but when you look locally, the sales in the northeast were up 2.1%, and up 3% in the south. the pending home sales down 2% in the midwest and down 4.8% out west where weather was not a c factor.

and now why? the problem is very limited supply on the market, especially out west, and weakening affordability, and the realtors also point to tight credit and they need the builders to ramp up to have more inventory for people to buy, and the home sales out in january sign iing e contracts to buy existing homes were essentially flat. the street was looking up over 1%, but the december numbers were revised up slightly, and it had been a big drop in december, and still, a flat january. back to you guys. >> and diana stay with us, because with we want to bring in cnbc contributor joe lavornia, and can you streamline this, how strong is the housing market from all of the data we are getting? ? well, it is bullish. i have been bullish for a while, and we had 12 consecutive increases in residential inv investment up till the fourth

quarter and where the weakness was in broker commissions, and that should snap back, and the home prices were up last week, and created a lot of wealth, and banks are starting to lend a little bit a and the sector is in great shape. and in april and may, the guess is that it will be higher. >> diana, he is right to be bullish in your view? >> well, it depends on the inventory, and we have had the analyst on earlier who said that when the builders ramp up, we will see more sales. we know that there is pent-up demand out there, and the question is have prices gone too far give n the higher mortgage rates, and the spring will tell. you can't blame it all on the weather, and es pepecially in t midwest, and supply is key. >> and simon, looking at the national are vacancy rate, we are back to levels we have not seen in 2000 and 20001 and the matter is affordability issue is more housing, but more rental units. >> and joe, i want to ask you overall economy.

obvio obviously the gdpp data is revised down, but we have ebb accelerating growth as greenhouse would put it, but at the same time the chicago pmi is coming in stronger than a lot of people expected. from your point of view, you seem to be brushing this aside because you are so bullish that you actually think that the yield on the 10-year could rise to 4% by tend of the year. >> that is right. >> and why such a big call? >> well, bullish, simon and have been for a while. we saw 3% growth in the back half of the year, and the reason for 4% is simple. the fed is tapering and they will end the qe this year and the market is going to discount a reversal in zero rates next year, and it is going to be consistent with history for 10-year yields to get to 4% and maybe above. so it is based on the bullish call on growth, and a likely fed response to that call. >> joe, what would it take for you to have a bearish view? you are known for having a bullish view on the economy and upbeat on housing and upbeat on

the consumer, but headwinds out there that we are not this a 3% economy, and what do you have to say about that? >> well, we were in 3% last year, and gdp grew over 4%, and there is fiscal drag. you are seeing the states spend, and california is starting to spend, and the growth is better and not weaker. and the stagnationists are doing to be proved wrong this year. >> but what if you get 4% on the 10-year, and for example, joe where the people are chasing the yield, do they come out of the dividend stocks and into bonds? >> initially, yes. >> and what about the housing market if you put 130 basis points on the mortgage? >> well, you have to put it on there relative to growth, and if the 10-year yields are going to be 5 and mortgage rates at 5.0 and 5.75, and those higher rates are occurring against the backdrop of a stronger labor market, and the equities down initially, but this is a good thing and the rates are rising, because the e kconomy is healthr

and it is not a bad thing and the growth is going to spontaneously slow. >> joe, have a great weekend and thank you for the analyst. and joe, chief analyst with deutsche bank, and of course, diana olick, whom you will see throughout the day on cnbc. and another big story today, apple's ceo tim cook will be in the spotlight when they hold an annual shareholders meeting in less than two hours, and what should investors be looking out? we are joined by the tech analyst in bcg analysts, and he has a hold on apple, and jon fortt with us here on set. collin, if i were a shareholder at apple's meeting, i would ask about the new products, but is it about new products or the use of cash? >> well, absolutely. if you are an apple shareholder, you have to ask yourself, where is the next major category that apple is going to open up to drive more revenue? the iphone accounts for north of 50% of the revenue, and we know

that the smartphone marketplace is decelerating and the growth is slowing down and a more mature market, an apple needs to roll out the new products and find new revenue. >> and the smartphone market maturity seems to be the buzzword and jon fortt, that is a scary prospect for apple, and how do they fight it? >> well, the funny thing about the apple shareholder meetings, you won't get clear and straight forward language from tim cook especially about new product, and you have to engage in the tea leaf readings. and some of the important things he would say is apple's approach to the emerging markets, and apple's approach to new services, and see what he puts out there for android, and it might be a time for apple to do a across the platform play similar to itunes, and they had them just on the mac and then expanded to windows, and i'm not saying that they should take itunes to the android, but there are arguments to do that, but there is pain with the payables or the wearables or something to

do with the biometrics to grow a market for themselves. >> that is interesting idea, does apple have a compelling argument? >> well, if you look at the average price of smartphones, they are down to $330 and they are continuing to drop lower and lower, and apple is a premium play, and high end play because the phones are commanding $650 a aa mps and so apple is going to be less effective in the emerging markets at this price points. >> and i understand that you have the hunger for the razzmatazz product and the launch, but what about the incemental moves of the company, because yesterday, they rolled out a new device enrollment program to enable businesses and schools to better lockdown the iphone and the ipad and what the

users can do with it, and it is hand's off technical advancement that could be important for the commercial buy-up of the mobile device, and does that excite you? su surely it has to be good for the revenues and the profitability? >> well, simon, all great points, but the question that you have to ask yourself when you look out at the landscape and you see the companies such as google p pushing so hard to wearables, and that are snapping up the robotic companies, and you talk about apple, and the opportunities in the educational market or in the enterprise, and why not accompany a company like good technology the give them that good strong enterprise footprint to push into the market, and why not acquire job own which is a leader in waterable space or basis or fitbit and so it is the pace at which the company is moving that has concern. >> it is true. it is seems that silicon valley, and david, you will agree with this, that the billion dollar deals are driven by google and facebook, and where is apple? >> and that is true. tim cook has not driven it, and

despite the company has $142 billion in cash and will generate another $42 billion this year, and much of it held off, but is there a divergence of strategy to take them down the road? it is hard to imagine what it would take for them to do it, when apple does acquire and make a significant acquisition, it is for vertical integration, and when they went into the chips with cmi, they made the capital investments to strengthen the supply chain position, but i think that the big question is services and emerging markets, and they decide to try to capitalize on that in a different way that extends the strate strategy. >> and how many smart watches have samsung put out, you just got back from barcelona? four already? >> well, they are all duds, and there nothing happening in the wearable markets. >> and you didn't like it? >> i liked it. >> i thought it was cool. >> well, the gear 2, you turnt

it this way and it is reading the wrong way, and none of these things has really made me go, wow, this is it, and somebody has cracked this market wide open. >> maybe it is a opportunity for apple, and thank you, jon fortt and collin gillis as well. and now to is the situation in ukraine, the ousted ukrainian president saying that he was not ov overthrown, but forced to flee for his life. and this is as the russian accusation of an invasion. jim maceda is live in ukraine. >> well, he was in the tailored suit looking defiant in the russian town with the first p public appearance after he had fled kiev and security forces switched sides a week ago and he was talking tough saying that he was still alive which meant that he was still ukraine's

legitimate president, and that he would fight for ukraine. he blamed the violence and the chaos that the ukrainians have suffered on the protesters whom he called extremist nationalists and pro fascists as well as on the west for giving legitimacy to those protesters and he does not recognize any of the new laws passed by the former opposition, and now the parliament, because he did not sign them himself, en colluding the new may 25th date for national elections. and meanwhile, on the flashpoint crimea peninsula, english-speaking gunmen seized two airports this morning as well as a smaller military airport and it looked like a repeat of the incident yesterday when the armed commandos seized the crimea buildings, and the cm commercial buildings were surrounded by gunmen and looking

for ukrainian guards burk there was no disruption of flights. there was also a standback at the crimean building. but they say they are in control of the airports and the government of kiev called an emergency session of their own security council with some reports suggesting, carl, that a state of emergency could be declared in crimea. jim, back to you. >> and now, clearly we cannot take our eye off of this story over the weekend. jim maceda in moscow today. and now back to the investments. it is a trade that can make or break a firm overnight, and why some traders are calling nat gas the widowmakers, and of course sh, mt. gox taking down bitcoin, and we will have the latest on that. more of "squawk on the street" when we come back. nt me to run h the car wash for you, too?

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the street." check out the stock that is the ebayh of europe. you can e see the shares are up 17% or 18%, and carl, a nice day for the ebay of latin america. back to you. >> thank you. and nat gas has lived up to the reputation of volatile trader this winter and how do the tr e traders handle the so-called widowmaker trade.

and we have more on that, with kate kelly. >> good morning, carl. i hear it is warmer here than in new york, but in any case, this cold winter has created volatile trading for those who have nat gas in houston. i am standing in channelview in texas outside of a lion plant that was rekrecently restarted take advantage of relatively low natural gas prices, and ta have seen the volatility in the last couple of months as well. to give you the facts and the figure figures of where it is going, since january 1st, the gas has been up as high as $6 for the first time since 2008, and pl plunged to the $450 range which is the worst four-day run since 1996. we can blame the volatility on this particularly cold winter mentioned a moment ago, but also on good old fashioned supply and demand issues say jeff curry chief commodities analyst for goldman sachs. plenty of shale gas has sup presed the vol ti -- volatility

in recent years, but this year, weather has caused a change. demands for gas to replace coal power, and both created temporary runs on what was available spiking the prices, and these things were x exacerbated by things such as a lack of pipeline capacity in some cases. the question now, he says, is whether the gas producers can ramp up quickly enough. >> one of the more interesting aspects of thinking about what happens in the summer is the need to increase production. and so the way i think about it is the big theme over the next 5 to 7 months are what are we going to encounter in terms of difficulties in trying to increase production that we didn't see in the previous period going back to 2010 and 2011. >> and currie says that while we is supply in the u.s., all sorts of production issues could crop

up in order to space the wells farther apart to tap all of the wells, and so sarah, it could be a rough ride, but they are still forecasting $4 gas by the end of the year. >> thank you, kate. and now bitcoin exchange is filing for bankruptcy this morning, and the ceo saying that over 750,000 bitcoins are unaccounted for which is worth several hundred million. and the ceo of mt. gox announced it on japanese news and bowed deeply for seven minutes straight, and this is the first report since rumors surfaced at mt. gox last month. it is terrible for the people who lost their money, and the question from here is, is this the kind of fatal blow for the virtual currency that everybody loves to hate, and loves to love and debate such a currency. mt. gox is about 6% of all of the bitcoins in circulation and

the believers and the supporters are siing this could take them from amateur hour to something legit. and it is a failure of law enforcement, and it needs regulation. >> is there a run on it like at the bank? or was it a hack attack? >> well, they are saying it is a hack attack here, but clearly mt. gox has had problems for months and it was telegraphed. >> and the hundreds of billions of dollars of bitcoins, could they turn up for right now? >> well, for now they have disappeared and they lose their money, and that terrible. >> don't look for the fed or any central bank to protect you, because it is the wild west. >> it is the wild west and if you are investing in it, you should be aware of it. >> well, it is registered in the u.s. authorities as a money service business so someone somewhere is going to the come through? >> well, all of the reg ulators are going to be looking at it, and we talked to ben locket ti of new york state, and i want to

read you one op-ed which is extremely timely, and this is from a venture capitalist involved, and it is a is that bitcoin is attempting to disrupt a regulatory framework and system that it must depend on for stability and growth, a nd e says that the key is to embrace external regulation to ensure the credible vendors may participate in payment processing. and that is what they have to look at so it does not happen. >> well there has to be a safer way, because you are sending them digits or numbers, right? it em soos to streamline the payment and make it safer over time. >> yes, and when you look at what happened with target and other retailers some bitcoin ed a voe kates would say this is an alternative. >> and you don't have to buy into the bitcoin scam, do you? >> well, it is nothing but a number and it is not access to the bank account or anything, and it is a number. >> but it all counts -- >> are you not agreeing with me?

>> well, i am not against you. >> well, we call it a pyramid scheme and kit go a wway quickl >> yes, and from 500,000 to 1,000 in a matter of months but two years ago it was $5, and -- >> well, it is a piece of paper. >> it has disappear and the digits have disappear and a binary, and have you done a digital interview and you get back to the office and find out it has wiped itself? it is gone? >> all of the time. in the ether as we say in television, incredible story. sim simon? >> yes, thank you very much. netflix has shaken up the tv industry winning emmy and oscar on the way, and now they could win an oscar for a documentary. does it stand a chance? more on that after the break. im, for $15 a month. low dues, great terms. let's close!

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there's always a lot at stake for big movie studios at the oscars, but this year, netflix has a stake as well. jane wells, no stranger to the red carpet joins us now from the dolby theater from hollywood

with more on that story where i understand it is raining a lot, jane in anticipation of sunday. >> simon, yes, this year, i'm wearing a raincoat. luis is the most important guy here in drought-stricken california, and it is where they are trying to keep the water from collapsing over the carpet, beneath me, and look. this year, there are so many good movies and no shoe ins as people are predicting, but there are three front-runners. >> who will not fall into despair! >> i feel like there are people on the outside working for me. >> i can't breathe. >> 500,000 day in, day out. >> always take a favor over money. i think that jesus said that as well. >> "american hustle" and "12

years a slave" and the actual number of tickets sold fell. there is so much competition for consumers and leaving little room for failure. >> you better have good quality with whatever you are going to do whether it is television or movies, because nobody is coming back for the second time or nobody is going to go to theater for the first viewing. >> and now netflix is getting credit for raising the bar in quality and breaking traditional models, and it happens to be in the oscars this year with the documentary. [ speaking foreign language ] >> it is to show the turmoil in egypt, and with the help of kick starter funds and grass roots campaign, it is a hit in pockets like kiev and mexico city. >> it frees you from having to

appeal to this kind of bell curve audience and to show that there is direct clusters of targeted audiences that care, and together, that is a loud voice. >> are you making any money? >> so, the deal -- [ laughter ] my mother has said that jehane, it is a job until you make a living and until then, it is a hobby. and enjoy the hobby and get a job when you can, okay. >> and that hobby may win her an oscar, and we will see sunday later on halftime report that new york is the new hollywood, simon. that is a problem here. >> and very gosch of you to ask about money in that situation, if i may say. >> well, it is cnbc. >> i know. all right. >> and you better get into the warm and the dry. jane, thank you very much. jane wells. >> straight ahead on the show, product innovation and the company's cash pile bound to be big issues at the apple share hoe sharehold er meeting today.

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and a look at the dow, we go to market flash. >> well, a name that you are familiar with, simon, carnival cruise line's ceo is going to

share up to 10 million shares. and 5 million of the 10 million were sold at $39.80, and that stock is down 1.5%, but still above the price that arison sold. >> thank you. and meanwhile, shares of apple, because the shareholders are gathering at the company for the annual shareholder meeting today and everything from the new board members to products to be discussed. josh lipton is live at the headquarters, and more with that. josh, i understand it is raining there as well? >> yes, it is stormy, but not as bad as it was this morning, sar sarah. look, the meeting is kicking off at noon, and lasts about one hour, and apple telling me that they are expecting a couple of hundred people, and the shareholders are going to be voting on ten proposals related to executive compensation, company practices, and the approval of apple's 2014 stock agenda, and a major plan on the agenda today is re-election of the company's directors, and the

board is going to present eight nominees, william campbell, chairman of intuit, and tim cook, and milllard drexler and al gore and robert iger and andrea jung and ar levinson and ronald sugar. all of the drirectors earned $300,000 for their time, and levinson made over $500,000 and at the end, tim cook will field questions from the shareholders and he is bound to get question s about the stockpile of cash, and the buyback program. remember that carl icahn withdrew the proposal to ask for them to buyback stock from fiscal year 2014. and we will see if there are products or services in the pipeline, and he has talked about apple's plan to enter the

product cat goir this year. and we will maybe get some insight on the much talked about apple tv or iwatch. >> thank you. josh lipton. now a big mover in the tech space, splunk earlier this morning up since jpmorgan raised it from 172 to 115 and the company did report a narrower than expected loss. the chairman of splunk, and former vp of marketing at apple and worked under steve jobs, godfried wilson is here. godfreed, you are called the industry standard for market data and how have times changed from the time we had you on to the time of the public markets? >> well, thanks. we had a great finish to the year, and up 52% in revenue and record number of customers and any time you have the result s that we posted, it is because

the customers are expressing their confidence in you sh, and are happy this morning but also very grateful. it is all good. and probably what has changed the most is that splunk is going from the departmental solution to much more of an enterprised solution, and the customers are starting to standardize on splunk for all of the analysis of the machine data. in fact, we sent out a press release this morning that symantec just standardized on splunk for the investigations, and so we are happy about the stock. >> and the speculation is around the stock and the expenses, and how about the things that you can control in the company which is expense? >> well, it is interesting on the after calls after the earnings calls where we have the 15- 15-minute calldowns with the investors and the analysts and the like, and it never came up, because they recognize that not only did we post 52% revenue increase, but 43% of our total boings did not even go to revenue, they went to deferred,

and either term or ratable transactions to go on to the balance sheet. and they said that you beat by $10 billion on revenue, and yet 43% of the bookings did not go to the income statements, and they totally get it, and they were laughing at us, and having fun at the expense, but not the least bit upset that the expenses were a slight bit higher. >> thank you. and now, obviously, we want to ask you about apple and the meeting today, and you were -- what employee number were you? 66? >> i don't recall, but it was -- there were about 500 people at apple when i joined in 1981. it was a $100 million company and maybe 500 employees or something like that. >> and so it was a while ago. i just looked at a chart a few minutes ago a ten-year return on apple is 4,000 or 5,000 percent, and do you advice or are you looking for any broad change or shift of strategy out of cook

today? >> no. our family is like a lot of others, we own five of everything that apple makes and we love the products, and i loved to work there for 11 years and i love the company still and they are a big company of ours and they don't do lousy products. whatever they do is well thought out. we expect apple to revolutionize every year and to be insanely gre great. and steve jobs would never allow a lousy product out of the door 1.0, and so it is going to be well thought, and it is going to be great and delight customers and so we wait in anticipation to see what they will shake up next and what a compliment to the company that is. >> and godfrey in a numb over pla you have worked at a number of places, and can you help me that

edward snowden has done more leaking than the british garden, and he has said that they had a program called optic nerve where 1.8 million yahoo! subscribers have their photographs taken on the webcams and it is stored regardless of the involvement with any terrorists or security issues and how vulnerable are people watching this television now with the technology that they have? >> yeah, i don't know. i think that it is maybe two years ago that senator feinstein was having dinner with a small ceo group, and she sold us that she was no longer concerned about military terrorism as the nu number one threat to the company, but she felt that digital terror iism was the numr one threat to the world and the u.s. specifically. in our business we see it everyday in terms of the companies being hacked, and attacked all day everyday. you can no longer rely on perimeter the defenses anymore.

and you have to assume that you have been macked and you have to have the technologies to go in to analyze all of the data and look for the outliers and the statistical anomalies and the unusual pattern. it is a 24 by 7 issue to try to defend yourself against cyberterrorism. i think that the agencies are just doing everything that they can to analyze the data to make sure they are looking for the outlier pattern. i don't think that they are doing the level of intrusion on the day-to-day citizen that the press would appear. but they are certainly looking for the outlier patterns that say, this is something that needs to be watched. so, you know, we at splunk, we don't condone spying or any type of internal intrusion just like you wouldn't, but i think that it is the new reality that you have to be able to analyze the data and a lot of it in order to find that needle in the haystack and looking to the unusual thing. it is a careful balance, but i tell our daughters and we tell them just a assume that everything that you do online,

somebody is seeing it happen, and it is a new reality. >> and we have to have you back some time and talk about whether or not you expect some apocalyptic event down the road when it comes to data and the hacking and the way that the world is changing, godfrey, and we will see you next time. >> thank you, carl. >> up next on the program, texas au autodealers slammed the door on tesla in the fall of last year, and what do they think now of the possibility of tesla building a huge factory in the states? the president of the texas autodealers association e will tell us why he thinks that the dealer contributions outweigh anything that elon musk could offer the states. he joins us after the break.

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we know now that one of four states will be the home of tesla's giga factory and bringing new job and revenue no the state.

the final four are arizona, new mexico, and nevada and texas, and the lone star state being the most interesting possibility, because though business-friendly, current law does not allow tesla from selling in the state of texas. phil lebeau joins us with that story and a special guest on it. >> hey, thank you. let's bring in bill woelters the head of the texas autodealers association, and bill, you saw that the possibility that tesla may put the new giga factory in texas, and would you like to see that in texas and 6500 jobs there? >> absolutely. it is a great place for any new company to come, and establish a plant. the conditions are prevalent in texas to provide the greatest opportunity for success for tesla or anyone else who wanted to come down. >> and having said that, texas is also one of the few states that does not allow tesla or any au automaker to sell directly to consumers, because you have to

sell to a dealership, and that is how tesla's business model works and what about the possibility of a trade, you bring the plant down here, and we will change the laws and allow you the sell your cars directly? >> well, the majority of the states in the country prohibit direct sell big the manufacturer in some way. tesla is going through some loopholes and the state laws and they have gotten licensed in states where it is actually illegal for them to sell direct. so to say that texas is the only one is a mischaracterization. >> but would you change the law, bill? >> well -- no, no. it is not -- >> why not? >> it is very interesting that a company would come in and say, give us your tax abatements, and give us our incentives and change the law? you would think they would come here just on the state on its own merits, and so we would not change the law, because the franchise laws of our state protect consumers statewide. we are the widest most prevalent

major retailer in our state, because we have franchise laws that keep dealers from being terminated by the manufacturer and provide the next generation of dealer families to take over the dealership. we have more dealerships in texas over 75 years old than there are manufacturers over 75 years old. so dealers are eternal in our state, and they are not threatening to leave the state. dealers provide a much greater economic impact for texas than tesla would ever provide. >> and i wonder, bill, obviously, and this is going to come down to the regulators and if they have to make the decision if it came down to it, elon musk and the factory and the 6500 jobs or the dealers, are you confident that they would side with you? >> would you say, 6,500 jobs? and they say up to 6,500 jobs and when you say $5 billion and they say up to $5 billion and

between now and 2020 when they say that the plant is in full operation, the dealers of texas will have contributed $3 billion in capital investment to texas in those six years, and elon musk $2 billion and elon musk and the contributors would have contributed $5 billion and the autodealers would have contributed $12 billion and when this legislators see what the difference of the franchise dealer dos statewide, we are a $6 billion a year industry, and we provide almost $11 billion a year in direct economic impact and that is not taken lightly by policy makers in our state. >> and mr. woelters, i was shocked to hear you say that in an economy that believes in the free market that dealers are eternal, and it sounds to me as if you may be giving a lot of contributions in many ways down the line, but you sound like a huge vested interest across what is the second most populated

state in the united states. surely, somebody is going to come along and want to disrupt that and inarguably it could be good for the economy if you believe in the free markets? >> absolutely not. every state in the union has franchise laws and it is not just texas and so when you say that it is not a free market, if we didn't have franchise laws, we would have a third of the number of dealerships that we have today. we have 1,247 dealerships in 284 texas cities and towns because we have franchise laws. >> bill, having said that, almost every other state where tesla sells and when i talk to the dealers in that state, i have not heard one story where they say this particular dealer is out of business because tesla is here, and the proof around the country according to a lot of people is that tesla is not hurting autodealers. >> tesla barely sells 0.001 of sales, but once you start

letting the manufacturers selling direct, then all of the sudden the the dealers i have in 163 towns of under 15,000 population, they disappear. all we would have is dealers in the major metropolitan areas with one price controlled by the factories. that is not good for anyone and certainly not 26 million texans. >> bill wolters, president of the texas autodealers association joining us from austin. and there you have it, sarah and simon, they are clearly not backing down and inviting tesla to come in to set up the plant in exchange for laws. >> i think it is tough for the regulators if they are forced to choose between the dealers and the factory. >> and the oligopoly. it is an auto oligopoly. >> and guys, this is the single biggest industrial project out there right now. >> yes, and can you imagine the political damage if you didn't side with it. phil lebeau. >> that is an oligopoly. >> that is why they call them

the disruptor. >> and now we will talk to the producer of the film "captain phillips" and "house of cards" and maybe you have heard of "shades of gray" and dana brunetti will talk about the oscars coming back. go to e*trade and find out how much our advice and guidance costs. spoiler alert. it's low. it's guidance on your terms not ours. e*trade. less for us, more for you. phone: your account is already paid in full. oh, well in that case, back to vacation mode. ♪boots and pants and boots and pants♪ ♪and boots and pants and boots and pants♪ ♪and boots and pants... voice-enabled bill pay. just a tap away on the geico app. ♪

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and the last edition for the week of santelli exchange. you know, i've traded markets for a long time. i always thought the markets reminded me a bit of little kids. any parents out there might be able to relate. you give a little kid a toy, they play with the box. they play with the box and then the dogs. you have dogs, you want to drive your dogs crazy, put two or three dishes of the same food, put them a foot apart and watch the dog try to decide which bowl to eat. the point of this is, markets are a lot like that. they are sophisticated, they are mature. but in the end the investors that make up a marketplace, their vision on what they focus on at any given time, that attention span, not only can it

be short but change rather dramatically. all right. that's the foundation. today my stencil for what the market and interest rate is going to do is going to be a pretty smart guy from deutsche bank, joe, talking earlier today. here is what he had to say about interest rates and growth. >> we saw growth over 3% in the back half of last year. the reason 4% very simple. the fed is tapers, they are going go end qe this year market going to discount 0 rates next year. it will be very consistent with history for 10-year yields to get to 4%, maybe even above. >> all right. lets look what joe said and break it out in a slightly different order. he talked about taper, feds rate and market and growth. here is the issue. if you look at 2013, the big story in 2013 that moved interest rates up rather significantly to over 3% was that the market was getting used to the notion the interest rate

subsidy would end. in terms of driving the marketplace we can look towards gdp growth. lets look at growth. q 2 of 2012, that came after 11, 4.9. i look at q3 of last year, 4.1, today's revision 2.4. sustainability of the way growth impacts interest rates can go in a multitude of directions. one thing for sure, when take you the training wheels off, the sustainability needs to be there. for 2013 what's the driving factor, weak stock market in january changed the entire dynamic. when it comes to rates, it doesn't matter if the fed is talking about your rates or not, it's only how the market does. watch the yield curve. the yield curving flattening, lower rates. what does the market look at, i don't know. i can tell you this. stock market as big a fundamental as anything else. back to you, sarah. >> thanks a lot, rick santelli.

a quick market flash. donald? >> a next chapter, eastbound at record highs. peter teal, one of pay pal's co-founders said he's opposed to carl icahn to separate paypal from ebay saying this not the right time for the companies to submit up. ebay hitting a record high. more drama, sarah, in that story. back to you. >> the battle of the titans. thanks very much. watching ebay shares. this diamond sold for a world record price in november. it's back at sotheby's because the buyer cannot pay. more when we come back. time and sales data.le a] split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim

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became the most expensive ever sold at auction may have lost its shine. more at hq, good morning, robert. >> the buyer of pink star diamond couldn't come up with the money so sotheby's bought it back in a costly mistake. flawless pink diamond sold for $83 million in november. that was the highest price paid for a diamond at auction.

sotheby's said a new york stone cutter couldn't pay so sotheby's is it is owner. normally hen it happened sotheby's could return to the seller and little cost. not this time, here is why. sotheby's guaranteed, which means they agreed to buy at a certain price. industry executives say that price was $60 million. when it was sold to mr. wolf, he was asking a broker for a mystery buyer. that mystery buyer, probably from overseas, backed out. when mr. wolf defaulted sotheby's had to buy it back for $60 million. they are out millions of dollars from lost commission and a share of the profit. sotheby's values at $72 million, sees real value for a diamond of this price. prices for big diamonds lick this are soaring after china looking for stores of wealth. pink diamond lost a bit of its

luster in the marketplace. back to you. >> manager under pressure from shareholders, that's not good news. >> the dark secret for these auction houses is these guarantees and things they have to do to get the good diamonds, good art, become very expensive to get consignments and that's why people like dan loeb are railing on about capitalization these guys are going through. >> lets get back to post nine where we're setting up for the next hour "squawk on the street." >> new york stock exchange, lets begin with a check on the markets. dow jones industrial a strong start friday 90 points to 16,363. the s&p 500 yesterday getting so much attention for that new record high. today adding 10 more points to 1864, adding 15 on the nasdaq as well. >> nice to have you back, kelly. 11:00 a.m. on the east coast,

8:00 a.m. on the west coast. waking up to major news in tech today. we're about an hour away from apple's annual shareholder meeting in california. we're going to tell you what to expect from apple today and for the rest of the year. >> black day for bitcoin, the coin exchange filed for bankruptcy with hundreds of millions in bitcoins unaccounted for a bump in the road for the virtual currency or is it something worse. >> we'll talk to the man behind house of cards, captain phillips and movie version of shades of gray. here to talk oscar hype and more. first up john steinberg buzz feed president and cnbc contributor and other own john ford joins us as well. guys, good to see you. start with bitcoin. montana gox may have lost all its bitcoins, half a billion dollar to hackers. he called it a weakness in the system. do we believe it's a hack or a

run. >> it would be a weakness, could have lost, could have been stolen. it's holding up well, above $554, down from the $800 it's around. the other point i would make out, it's terrible people lost all this money but most people probably have a much lower basis. probably millions and millions held at a basis of $1, $2, $50, i don't think you can call it a $450 million loss. >> john is shaking his head. >> i wouldn't call it a black day for bitcoin. i guarantee very few black people involved in this. >> white men don't mix. >> french. anyway, mind boggling to me. you lose a half a billion dollars worth of bitcoins. the whole thing was supposed to be these things are so easily trackable. where did they go? >> exactly what i was going to ask. these bitcoins aren't lost. they have been hacked. they exist somewhere. when a bit conis lost, where does it go and how do you track

it? >> this is quintessential thing warren buffett hates, doesn't put his money where he doesn't understand. even people that understand can't explain this to me. >> it's a unique string of numbers. either you could lose the string of numbers or somebody could take the string of numbers. just because a bank fails or gets knocked over by robbers you don't say we're going to shut down banking. >> there's insurance on deposits. >> does need to be regulation, fdic on this. i'm not total regulatory person but i wouldn't say the entire thing is dead now. >> you don't see irony in libertarians saying this is not enough regulation that we have been championing. >> i think they have a bit of egg on their face, no doubt about that. this is going to go. 6% of the whole market. that's it. >> not sure many supporters of bitcoin are necessarily calling for more regulation. i think what this would kbri is who are up of systems involved.

they emphasized decentral nature of bitcoin, mount gox, security and how do you make sure other exchanges have better systems but frankly you can do that without any regulation involved, can you not. >> everybody somebody has explained bitcoin to me, something happens that comes out of left field. is it the case once whoever stole these bitcoins, once they try to spend them, all of a sudden they will light up and we'll know where the bitcoins went. i don't know. >> talk about mainstream it made "the daily show," jon stewart on bitcoin. >> listen bitcoin exchange you've got a lot to learn about being a financial player. you don't commit fraud in one fell swoop you institutionalize, organize systemic fraud which brings me to the next segment, show me the money, so i can take it and put it in a place you

don't know. >> somewhat muted, talking about this is just one exchange. >> nude web cams, diet drugs, a couple online ads reaching teens on facebook. that's according to the journal. the report highlights facebook's challenge in policing both its billion users and i couldn't believe this, its million advertisers. that's a lot to keep track of. >> that's exactly the point, a lot to keep track of. we see this with ad networks, low quality, flat belly, teeth whitening ads. these can be trafficking errors. it's difficult to prove every ad. it's a question of scale. it's not 50 advertisers like television. >> this is kids, 14, 15, that's just the ones telling truth about their edge. >> these hot or not types, sites selling gun holsters, they have been around a long time.

on google you don't even know how old the people are seeing these ads. it could be eight and nine years old clicking on them. at least with facebook there's some level of potential accountability and headline risks for them. they have to come out and make sure they are doing the right thing technologically. >> basically as a publisher, somebody running these, you bar certain categories like firearms and things of that nature. then you need to do free text analysis to see if there's certain words to avoid. finally a manual approval process for smaller volumes of ads like those on youtube. a lot go through manual approval queue. with this volume they need -- >> we're showing facebook down 1% today. i'm curious, what, if anything, this tells us about facebook as a vehicle. >> i think everything it tells us about facebook is pretty good. the one area of digital btability. i'll try to bridge this with the bitcoin story we talked about.

here is a system of accountability, high reliability. you actually know who the person is seeing the ad, who the body is who is displaying the ad and paying for it. facebook has been pretty good going back and saying these people violated our terms of service. we're shutting them out. not quite the wild west nature in the past. >> the stock continues to be teflon, goldman took their target to 78. >> someone was making the case to me the other day, look, if you want to talk about whether this is a castle built on sand or what have you, would the value in yahoo! be as high as facebook. you look at facebook shares since the acquisition, they have rallied. i wonder if they are ascribing an intrinsic value to the half billion users of whas app. >> when they acquire a massive

network people say can they bring the secret sauce to the new platform. >> i went to barcelona, talked to teens, college students, what they could have on their phone. if they could only keep one app what would they keep? all said whas app. this has a potential to be a browser. >> and all went out for sangria afterwards. >> the point i would make, outside the u.s. whas app is not a debate only in the u.s. whether it's a big thing or not. >> amazon in talks with music labels about starting a streaming service. while the talks have been ongoing for the past few months, the deal is far from getting done. mainly sticking point, amazon asking for a potential discount on pricing labels have given to other services like spotify, raps difficult and beatz. >> how many services can you listen to?

everybody has a streaming service. the only thing i come up with on this one, maybe they go to original music content. >> becoming a label. >> just like netflix did with video. otherwise we have google, spotify, beatz, doesn't seem differentiated to me. >> i would go as far to say this doesn't matter except it makes amazon prime offering more valuable, get it in, hike the price. if you think you're getting that value. imagine jeff bezo asking for a good price i'm not sure he's going to ask. i'm not sure it alters the and escape. >> most people don't know they can get streaming video on amazon. in music, locker-based system, buy the files. nobody wants that. everybody wants streaming. maybe a full menu, discounted enough people switch and able to sell more amazon. >> most people kind of shrugging at this story. every time apple goes into a line of business, correct me if i'm wrong, they have managed to use their strength, skill, to

disrupt and own it. >> unless it's ads or anything having to do with services. you know, if i'm in the music industry and i'm an artist, i don't know if i'm that excited about amazon coming in and trying to drive down the value others in the ecosystem are getting. if they are able to come up with configuration interesting that gets people to pay. >> haven't gotten to scale a streaming video. haven't gotten to scale like itunes has. not a sense they can do this. >> they have been doing this 14 years. >> just because one thing doesn't mean immediately they are scaled to digital content. >> thanks, guys. >> don't you love these two together. >> the johns. >> felix and oscar. >> both jons with no h. >> apple for the rest the year former software designer. he was employee number 66 of the

company. in just a moment. house of cards, captain phillips and "50 shades of grey." we'll talk to the man behind all of them dana brunetti. rick santelli, what are you talking about this morning? >> the macropicture, what covers the country, the country can't be stronger than the sum of its parts. the parts we're going to be looking at today, chicago and detroit with an s&p analyst jane ridley who put out a report comparing, contrasting, chicago the third largest city. you want to hear what the prognosis may be for the third largest city all at the bottom of the hour. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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they stayed pretty quiet at ces, barely a peep during congress. what could apple have down the pipeline? a principle with norman neilson group, apple's 66th employee, designed the first human interface and stayed 14 years. bruce, welcome, great to see you. >> good to see you. >> if you had to guess, what's apple up to next? biometrics, fingerprint scanner in a bigger way? >> well, i think that may come, apple beyond blast for iphone,

using the same sapphire they are using for reading, people can read through the screen rather than home buttons. that's coming. i think important things for the long-term are the iwatch and with luck apple tv. >> two products, bruce, we have heard more about in the last year than even the products apple currently has and yet no evidence they exist or they are not in front of us yet. is it your view they are coming and the transformations? >> my view the iwatch is coming and it will be transformative. the apple tv is up in the air. the strategy it and was to line up all the content providers and it's not clear they have had much luck with that because of existing contracts and pushback. they are pushing into existing

industry. whereas with the i-watch they are opening up a new area. there are people who want to be known as first in that area that are putting out little toys. but the i-watch will be the first serious attempt to really create a transformative product in that space and nobody is there to block them. >> maybe starting to get at what i was about to ask. i said i thought all the watches that i've seen out there thus far have been duds. whattes your take on the watches from samsung, pebble, others out so far? any of them have elements likely to be big breakthroughs? >> well, pebble has actually taken an interesting approach. we have limited technology, lets do the best we k they brought out a watch that doesn't have to be charged every 20 minutes. what it does it does well but that's very little.

samsung has brought out a, hey, look at us. we've brought out a product before apple does. it truly is a toy, requires constant recharging. as you put it, it's a dud. apple's product is going to be practical. it's going to be beautiful. it's been very interesting to me. about a year ago i published an article on the iwatch where i predicted exactly what it will v in the last year we found out they put together a really good marketing team that knows what they are doing in that space. they are developing low power chips needed to drive it. they are doing a lot of work with curb displays. apple has never been the first product, the first in the market in any area. tablets were out 10 years before the ipad. what they do -- >> bruce, i was just going to ask you about that. give us some color on what

happens in cupertino and they are not first and others are, how do they react to those products? do they laugh in does their engineering change based on what they see the competition doing? >> i suspect both. that was true when i was there. but you know, steve jobs greatest legacy because he had the courage not to ship before he had something that was revolutionary. that's what apple is doing now. the longer they are taking to get the iwatch out, the happier i'm getting. they are taking the time to do something right. they aren't reacting to the market and that can be fatal. >> real quick, the most transformative thing that could lap in this space at this moment is patry technology. if you had a mobile device, wearable device you didn't need to charge for weeks on end, it would be transformative. when you talk about battery technology, is there a way in

which apple, one of their partners, someone else in the tech space could come out with this kind of killer app? >> the battery technology is moving at the pace that it's moving. at the point apple would have something that would last several weeks without charging everybody else would, too. when you look at it, the problem is not how long the battery lasts but what it takes to charge it. they have patents on wireless charging delegate where you could have a little box beside your bed and it would be charging the watch through the air while you slept. they could have a mechanical generator in the watch so the hand movements could watch it. they could have solar. i really doubt it. but there are technologies for charging. and then, you know, what are people willing to put up with. i don't think they are willing to put up nightly having to take off their watch. once a week, maybe if that's the

best apple can do. >> always great insight to get from you. our thanks again. see you next time. >> okay. >> talking some of the future of apple there in the pop line. jon, thanks again, too. twitter was iconic moment on the stock exchange floor and we were at the heart of the action attachment a listen. >> are we getting any closer? whattes your sense? >> we're definitely getting closer. the band is starting to tighten. we're seeing human judgment and interplay of technology and people here to open at the right price trans apparently. >> a lot looking, candy crush and others. bob pisani on the floor. >> historic day, twitter opened 4510. same guy, glen, trading $55.10. we want to talk about a whole crush, biotech, smaller numbers, smaller names. why now?

why are we going to see a crush of ipos? >> most companies that will launch in march and april, two-year 2013 financials. we haven't seen companies be able to do that yet. we're going to start to see that now and technology is leading the way. >> let me show you a short list of names. these are big ones. drop box is coming. they have not filed formally. seamless, online ordering service. the public. jd.com, this is the one i want to hear about, amazon.com of china, biggest online retailer in china. when is that going to happen? >> what's interesting in china, we can expect two dozen transactions from china. we haven't had that type of volume in the u.s. since 2010. we're expecting to see a lot from china this year, that among them. >> where is it listing? here, nasdaq? >> when it's public. >> stay tuned on that one. capital management, arrow

holdings, cloud-based wi-fi, dozens of these kinds of all around idea cloud-based computing software as a service. >> building on trends we saw last year that were successful. enterprise consumer, cloud-based technology, all these areas tremendous growth and investment. >> small deal priced overnight. ver on ark, software platform, analyzing data security, over on the nasdaq priced at $22 and opened at $39 just a few moments ago. i showed you how big some of these data security firms are these days. what about other ipos? there are big ones. coupons.com coming next week. online coupons. >> you got that. >> that's doing to be here. what's interesting is in addition to private equity, you have a lot of transactions coming from existing public companies. we have 33 announced deals that are spinoff ipos. we have 11 last year.

>> of course there's an etf for that, folks. ipo, fine folks at renaissance run that and that consists of top etfs in the last two years. my thanks to renaissance and ipo boutique for helping out. thank you, my friend. two years down here when we opened post 9 where carl and everybody else is signature now. thank you for your partnership and we hope to continue that. >> been a great two years. >> back to you. >> big day for that ipo. up next ahead of the oscars we're talking to one of the producers of best picture nominee captain phillips. also "50 shades of grey." dana brunetti will join us when "squawk on the street" comes back. [ tires screech ]

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emmy golden globes winning program "house of cards" now headed to the oscars for "captain phillips." president and ceo at trigger street productions. dana joins us from los angeles. dana, great to have you back. good morning. >> thanks, carl. thanks for having me. >> so much to talk to you about. oscars first. "captain phillips," six nominations. how much is riding on a weekend like this for a producer like

yourself? >> i just kind of take it as it goes. i don't have a lot of high expectations for myself. the numbers are already sort of in. we know where we sort of fall. i have a lot of hope for editing and screen writer. as far as best picture, i don't think you'll see us on stage. >> actors. >> it's an honor to be nominated. >> it absolutely is. you're getting buzz for supporting actor as well. is there math to be done based on how many statuettes you do take home sunday. >> every statuette helps. it helps with dvd and video on demand and all the auxiliary. the box office was the big one for us. the film did much better than i could have ever hoped. just to be here an get to go to the oscars again, that's just icing on the cake. >> dana, how much for you is

this about some of the disruption, some of the newer technologies here, partnering with netflix, for example, how much about whatever partners are out there today to make great content? >> it's fantastic for a content creator like myself because there's more places to take material. it's better for the audience because there's a lot more ways to get content and more content to get and to get it at a better price than what you normally are slammed with. >>a "house of cards," season two, phenomenon. as a story teller, is that the goal? are we in this weirdo period where we're binging and is it doing things to the creative process. >> not doing anything to the creative process, we're still

telling the story. the first season like a 13 chapter movie, the second season the second way. binging, how people binge. binging has been around a while. it's just been termed. if you go to a dvd box set, i did it on "the wire" or t"the sopranos" to catch up. people have been binging for years. netflix is starting to realize this is the way to do it, give them what they want, how they want it and give it to them on a multitude of devices. >> can we caulk about "50 shades of grey." what's next? or that type of endeavors. going to be around valentine's day next year. >> this year we released "house of cards" on valentine's day. next we're we'll release "50 shades of grey" or valentine's day. >> that will resolve turmoil

with regards to which actors would be involved. a huge project in terms of financing that's involved. is that what your main focus is on for the moment? >> we just wrapped production on that, so that now goes into post. my focus now is having "house of cards" just released and going into the oscar, my focus is cabo next week. >> here is a touchy one to finish on, dana. as you know netflix is pairing our parent comcast for basically delivery. we don't know the terms of this deal. i wonder, hu heard anecdotally saying i'm having trouble watching the season, it's taking forever to buffer. how do you think that pipeline issue will be resolved in the quarters and years ahead? >> i mean, it's going to be like if you look at cell phones years ago and everyone was worried about the number of minutes they had. now it's not even a concer i think that's eventually where we're going to get.

i think the u.s. lags in the world as far as our pipes and what we're capable of getting for internet speeds. i didn't hear any complaints as far as people having problems with buffering or with being able to stream their content. i guess in certain parts of the country or certain places, there are issues, but that's all -- it's all noise to me right now. i think in the matter of another year or two, it's a thing of the past like static on a cell phone. >> i can't believe what you did to kate mara in season one. >> hey, no spoilers. no spoilers. >> dana, break a leg this weekend. >> thank you. >> we're so proud of you and look forward to seeing you again soon. enjoy cabo. >> thanks, carl. >> dana brunetti joining us from los angeles. we want to alert you grub hub filed for ipo in the first half

of the year. grub hub merged with seamless.com last year. kelly and i have been handed the s1 on our desk. >> bob just talked about this, carl, a number of companies, not just tech companies but la quinta, ally financial, an important one from the narrative point of view having a come back from the dead if you will. lets bring simon hobbs. the close in the uk across continental europe. what's happening overseas? >> this is how it looks, shutting the month of february, earlier losses cut as a result of gains we've seen here. i would point out to you greece again has made gains again. greece up 1.5%. we'll come back to that in a moment. the big news in europe is the inflation data has begun to climb. the headline consumer price index 0.8 pours, core index 1.8%. that takes pressure off near term for ecb to do something

now. if we look how we traded during the course of the month effectively europeans in lock step with what happened in the united states despite big high-profile misses on the earnings front. pimco, wpp yesterday. the gains we got at the beginning of the year. europe still leads. still a phenomenal year so far for the likes of greece and ireland and portugal. the pigs are really flying as you can see. again, 13% in ireland. same time bull markets rallying. yield on the greek ten-year, for example, fallen below 7% for the first time in four years as people take off the table the possibility of a great calamity and attracted by the yield at 6.9%. i want to mention banks. austrian an invests in central and eastern europe, exposure to ukraine $600 million, bank, spanish bank, started

reprivatizing. madrid sold 7.5%. the royal bank of scotland. it is slightly higher today. for the week it has been terrible. new losses yesterday taking cumulative losses at this bank, 81%, $76 billion. that's as much as the british pays to bail out as well ceo under huge pressure to bring back to uk focused only bank. that will have real implications in the u.s., citizens owned, cfo under huge amount of pressure. back to you. >> tough story. thanks, simon. have a good weekend. simon hobbs. apple shareholder meeting half an hour away. a lot on the agenda, cash horde and new product in the pipeline. institutional investor number one analyst.

good to talk to you. should we be alert for crisis? some floating out there in the e ether. >> certainly there are. shareholders meetings don't yield significant news. apple by its very nature keeps things close to the chest. i'd be surprised if we had anything material emerge from the shareholder meeting today. >> i'm thinking of rivals on the cell side who had outperforms for a long time, years, oinlly giving in and going to a more moderate stance. they feel a new product like iwatch not going to move the needle. do you feel the same way? >> apple at a different stage than it was a year and a half, two years ago. apple was the shining example of hyper growth company. the challenge now is it's $170

plus billion revenue company. ultimately the growth imperative is much more challenging going forward. moreover, many of the markets they participate in are increasingly mature. this is a very, very different kind of company. i think it's hard to say with conviction that earnings are going to be higher two or three years from now. yes, i think investors should be looking at this company differently. we view it as trading stock more than a company we can confidently say is going to have much higher earnings two or three years for now. risk we ward is favorable now. >>t >>toni, sorry, it's interesting. much of the debate has focused on what carl icahn has with regard to more capital returns, not all shareholders lining up with him. high-profile, other shareholder services saying they weren't so sure his plan was the best way forward and apple should focus on the product line. do you think that's all going to come to a head potentially at

this meeting? >> i don't know if this meeting is going to be the catalyst because carl icahn has withdrawn support for his own resolution that apple should return $50 billion in cash. so you know, apple is less on the hot seat. they announced a couple weeks ago they bought back $14 million in cash following earnings. ultimately that is not the lightning rod issue a month ago. in part aggressive in repurchase sharls and he's backed off of his insistence on it. >> if we go with that, is it a balance sheet number, a product still? what do we watch? >> typically the stock trades and works in anticipation of new product." some of our analysis is

startling in simplicity. on average if you buy two months before iphone is announced, you have 150 basis points. in the following months you have zero to negative performance. it's highly anticipatory around events and new products. they are going to get into new products. they are explicit they will update cash return policy and app is widely expected to introduce new iphones in the june to september timeframe. there are a lot of things for investors to get excited about and to potentially raise their numbers. that's basically when the stock works, in anticipation of those events. >> tony we've got to go. real quick. should apple by tesla? >> no, it shouldn't. apple is about integrating and building things into its existing platform, about control

so a step out acquisition like that doesn't fit with apple. >> love your perspective, toni. thank you for joining us on such an important day for this company. really appreciate it. now, since detroit went bankrupt, many have drawn parallel between its cig and the one in chicago. could the windy city suffer the same fate as detroit? rick santelli is there and he's going to try to get the answer for us. rick. >> we certainly don't hope so. that's for sure. i'd like to welcome my guest s&p analyst jane ridley. thanks for taking the time. >> thanks for having me here. >> lets start out simple, two similarities. >> ongoing structural imbalance and date and pension liabilities they have. >> what about the biggest differences? >> definitely the economy and management. >> okay. so chicago metropolitan area have a lot of horsepower. >> yes. >> reading through your report, a couple of things jumped out at me, gave me nightmares, in fact. in the early years before the bankruptcy in detroit,

underfunded pension liabilities in the neighborhood of $640 million. >> yes. >> em, what's em. >> emergency manager. >> ultimately as bankrupt started getting under way, what was that number in his estimation. >> $3 to $5 billion. >> my goodness. here is what we have to worry about $644 million turns out to be $3 billion. that makes me nervous. when it comes to chicago, how much are they spending a year in percentage dollar amounts to service their pension contributions? >> for all of their debt they are spending -- for the pension contributions about $480 million. >> that's about 14%. >> yeah, somewhere, 10 to 14%. >> something big happened. >> yes. >> everything sailing along pretty good. they made adjustment, governor made adjustments. as your report shows, what changes in 2016. >> they have to fund more of the pension plans they haven't had to fund up to the full amount up to this point. it's going to go up to closer to $2 billion. >> wow.

so we're going to more than double the percentage, between 12 and 14%, 28 to 34% of what they have in their coffers that needs to go to those contributions. >> rick, i think i got my number wrong, 1.1 billion. >> so in the end they need to start getting ready before 2016. >> they do. they have tax flexibility but can't wait until 2016 to use it. >> cut spending? >> they spend a lot of their costs on fixed costs and public safe safety type costs. >> here is my last question. raising taxes results in people moving away. we have this big ramp up they have to prepare for at the end of this year in 2015. it isn't as though the future is guaranteed. they have the pieces to work it out of the future is untold. >> that's true. a reaction of people leaving the city if taxes go up too much. a vibrant economy, a lot of young people here. they could well be able to weather through it. >> jane, thank you for taking

the time. it was a pleasure. >> thank you for having me. >> gang, back to you. lets keep our fingers crossed for the third largest city. >> thanks a lot, rick santelli. >> send it over. >> talking river bid moving lower, company rejecting the raised bid of $3.4 billion or $21 a share saying that offer isn't high enough. elliot, river bed's second biggest shareholder has about a 10.5% stake. it responded saying the board again failed shareholders. see that stock down .75%. >> thank you very much. the long battle between menswear house and joseph a. bank. might be getting to a resolution. we'll explain in a moment. first time in decades, nutrition labels p getting a big change? take a look at the screen?

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we'll ask whether markets are topping out or breaking out. has apple lost its mojo, creative guru, now is a pivotal moment for that company. plus how could oscar results impact stocks in your portfolio? we go live to the red carpet. we'll break down the actual value of an academy award. that's coming up in just a bit. >> looking forward to it. thank you, scott. a quick check on the markets. dow jones industrial ample adding 100 points at this early hour. s&p adding 1865. despite closing at record highs for that in deck, there's no looking back at least for right now, again, 100 points on the dow. the long back and forth battle continuing between menswear house and joseph a. bank. there may finally be an end in sight. cortney reagan live in new york city with more for us. morning. >> good morning, kelly. it's been an ongoing battle between the two men's suiting retailers. this week has been a fairly active one. it does seem as if a deal is all

but inevitable between menswear house and joseph a. banks. the big remaining question is what price? it started in october when joseph a. bank, which is smaller, made unsolicited offer to buy menswear house, which was rejected. menswear house made its own unsolicited offer, which was rejected. although it kept upping those bids over time to no avail until last night when joseph a. bank said it will sit down with menswear house allowing proposed acquirer to do due diligence it requested albeit limited, in order to get a price above menswear house $63.50 per share offer. then there's also that $825 million deal for joseph a. bank to acquire eddie bauer. a judge requiring joseph a. bank to alert men's warehouse ten days. suggested they made the offer

for eddie bauer to get a higher price for men's wearhouse. a deal seems inevitable. hedge fund capital, which is a shareholder in both companies supports the deal. i think now we can go ahead and let those jokes flochlt you're going to love the way you look when you buy one suit and get three for free, on and on and on and on. kelly and carl, back to you. >> you guarantee it. >> i guarantee it. >> courtney reagan joining us from new york. thanks. when we come back. nutrition labels you probably know getting a makeover with these brand-new big labels replacing older smaller ones. question is, is it good for business? especially companies that promote organic healthier food. we'll talk to the ceo of annie's in just a moment. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation.

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welcome back, i want to send it over to sara here with a special guest. >> and the food and drug administration announced this week it wants to revamp nutrition labels on foods which haven't changed in roughly two decades. the changes are intended to help americans make healthier decisions about what they want to eat. but the question is, what will it mean for consumers and for the food companies themselves? joining us now for a cnbc exclusive interview is the ceo of annie's. and john, it's great to have you on this topic. very timely. biggest change in two decades. do you support the new labeling?

>> we absolutely support the new labeling. nothing happens fast in government. 20 years since the original labels came out is a long time. and our business as a national organic food company, we are about 25 years old and we've been growing largely because of a big shift in consumers understanding the relationship between what they eat and their overall health. and looking for cleaner, simpler ingredients and products. and we think any movement to highlight nutrition, calories, sugar is a great thing. we think that the proposed rules don't go far enough. we'd love to see some more focus on whole grains and also, what ingredients are in the food that you're eating. we think it's a good step in the right direction. >> i know gmos, as well. but on this topic for a second, do you think it'll specifically give annie's, a company that touts its healthy ingredients a boost, an edge over its competitors? because when you see in the supermarket now, the annie's mac

& cheese versus the kraft mac & cheese and you can see the ingredients in the calorie count, do you think that will help you? >> well, we typically have a little less sodium than a lot of the products we compete against. we think in general as a company, transparency is better. it's baked into the culture of our brand. and we think the more consumers understand and know about their food, the better. we think it's a great move in the right direction. >> how much will it cost companies like yours? >> the costs will be negligible. there's a 90-day comment period. it'll take a year for the rules to go into effect. and there'll probably be about a two-year transition period. the cost to companies like us is going to be negligible. >> i do want to ask about gmo ingredients. you have taken a stand against them. i know you don't include them in a lot of your products. why now? why all of a sudden this movement against gmos. we've seen cheerios, for instance, when the fda says they're perfectly safe.

>> yeah, well, the consumers that seek out annie's are interested in products that don't use gmos. we don't use gmos in any of our products. and our company position is t t that, you know, there's a lot of research that needs to be done on the long-term health benefits and environmental impact of genetically modified ingredients and so we think that it's the right thing to let consumers know that they're in your products. and so we have been very vocal in supporting mandatory labeling of genetically modified ingredients. this is something that's done in the eu, japan, even china in their products. and so we think it's time that the united states steps in that direction, as well. and we hope we move in this direction. >> well, we've seen that consumers want it from all the polls. the question about whether they understand it is another thing. do they? >> more consumers understand it now than before. we've been tracking consumer understanding this issue for more than a decade. and when we first started polling it, 2%, 3% of consumers

understood it and were aware of the issue. now it's about half of consumers and there's a real ground swell movement in this direction. and, again, it's all about transparency. let consumers decide, you know, put it on a package, let consumers decide for themselves. >> if they want that and increased demand for gmo-free products, why, then, did you lower your guidance recently? disappointing investors in your stock? >> oh, yeah, the guidance had nothing to do with the genetically modified ingredients. we face higher commodity prices in the back half of the year. higher than we expected. so we wanted to let investors to know where we thought we were going to end the year. we're still expecting a very strong fourth quarter and eps growth north of 20%. in our businesses have been growing in the range of 20%, last quarter 22%. and we haven't set guidance for next year. but we expect another strong growth in the year ahead. >> and increased consumer awareness about healthy ingredients.

thank you, john. john foraker is the ceo of annie's. >> thanks very much. straight ahead, we've got comedian jon stewart. we'll be wy as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again. and now i've got to take more pills. ♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] look for the easy-open red arthritis cap. ♪ save you fifteen percent or more on car insurance.d everybody knows that. well, did you know pinocchio was a bad motivational speaker? i look around this room and i see nothing but untapped potential. you have potential. you have...oh boy.

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welcome back. in case you're like us, maybe, you know, an early riser, go to bed early. we want to bring you more of what jon stewart said on bit coin. he's offering his thoughts on the digital currency. take a listen. >> i suppose it's only a matter of time before survivalists begin to hoard bitcoin. and rappers unveil bitcoin grills. and then, of course, ten years after that, madonna gets one, too. >> that's classic stuff. i mean, what's -- if you're a fan of bitcoin, a whole population just got introduced to the currency by jon stewart, which is probably not good for bitcoin long-term. it's a long road ahead. >> i don't know. or the argument is now that there's more familiarity for this product for better or for worse. >> in the meantime, dow up 112,

18.67 on the s&p. and on twitter a moment ago, dow is at an inflation adjusted high, one of the talking points that the bears and shorts continue. >> we'll talk more about that. >> wapner and the halftime. scott? >> i don't know, topping out or breaking out, that's the conversation that seems to be occurring these days, guys. and you know what, you look at the nasdaq, carl, you guys referenced the dow and the nasdaq's at 4,300. not that long before we're going to be on nasdaq 5,000 watch again. >> we're within 15% of the nas all-time high. >> josh brown on this, he's a riot. >> well, we'll hear from him and everybody else. have a great one, we'll see you on monday. welcome to the "halftime" show. here's what's in our game plan. most admired, most investable. the apple shareholder meeting is kicking off right now. why the stock is